comscore Samsung could beat Intel to become the world’s largest chipset maker in Q2 2017: Report

Samsung could beat Intel to become the world’s largest chipset maker in Q2 2017: Report

Samsung’s DRAM and NAND memory chip business is booming.


Intel has undisputedly held on the top position as a chipmaker since 1993. After over two decades, the company s number one position is under the threat. A recent report form market researcher IC Insights suggests that Samsung might steal the lead from Intel by Q2 2017. Samsung will be the world s largest chipset maker if the manufacturer continues to grow at the same pace, the report says. Also Read - Google Pixel Watch renders reveal key design details: Know details

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Intel is expected to report sales of $14.4 billion in the Q2, 2017, whereas Samsung’s sales are expected to be slightly higher at $14.6 billion. The difference between the two is only marginal and though Intel might have better number in terms of sales, the high pricing of Samsung s chipsets is what gives the South Korean manufacturer the lead. Also Read - How to clear cookies, cache on Android in simple steps

Intel continues to be the leading chipset maker for personal computers and laptops. However, the smartphone market is quickly catching up and is proving to be Samsung s stronghold. Samsung manufactures DRAM and NAND memory chips for smartphones and has managed to match Intel in sales figures in less than a year as Intel reported 40 percent high sales last year.

Owing to the boom in high-end and premium smartphone market, the prices for DRAM and NAND chips are soaring. While the market for the memory chips is expected to continue, helping Samsung retain the lead, the prices are expected to drop in 2017. The drop might have an adverse effect on Samsung s profits but as the markets are volatile, the company might enjoy its positive run a little while longer. With tech giants like Google and Facebook further expanding services through cloud storage, the demand for the chips is upwards.

If the demand for the chips continues to stay strong, prices for the NAND and DRAM chips could rise by 25 percent and 39 percent respectively, aiding Samsung to further grab a stronghold. Samsung might also displace Intel from the top position when it comes to semi-conductor sales as both companies have reported sales of approximately $60 billion, though Samsung is quickly taking the lead. ALSO READ: Samsung Galaxy S8+ Review: It s glorious, but with some caveats

With majority of Samsung s profits rolling in through component business, the brand is achieving strong growth. So far, Samsung has had a strong run even in the display business. Apple has reportedly placed an order for 70-million OLED displays for the upcoming iPhone 8, and anticipating added demand is gearing up for production of nearly 100-million units. However, with Apple looking to shift to microLED, Samsung s OLED business might soon suffer a setback and analysts have warned the brand about exploring other avenues. A strong growth in the chipset market could offset the future decline in OLED sales for the brand.

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  • Published Date: May 3, 2017 2:15 PM IST

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